Shopping during the holiday season less "merry" as consumers face high prices
A new report by Lending Club shows more than half of Americans are living paycheck-to-paycheck.
Shoppers are frustrated and feeling the pain of high prices. Many are forced to adjust their spending habits, like buying early, finding deals, and keeping gift-giving to a minimum. Meanwhile, shoppers are faced with an increase in prices for everything from groceries to kitchen appliances and toys.
"Instead of buying multiple gifts, I'm limiting it to one person. Some folks aren't even getting gifts," shopper Ricardo Sainz said.
The National Retail Federation says 38% of people started buying holiday gifts earlier this year. They also report that 60% of shoppers say deals are more important this year.
A report by Salary Finance found that two-thirds of working adults say they are worse off financially this year than last. But experts believe consumers will still spend just as much, if not more.
"A couple of days ago, retail sales came out and showed that the consumer is doing well. So when it comes to the Thanksgiving holiday and Christmas, these are nonnegotiable for Americans," Professor of Finance at Sacramento State University Sanjay Varshney said.
Major retailers are taking notice. Target says this year will be its largest Black Friday sales event ever. Deals start Nov. 20-26. It includes up to 50% off on electronics, toys, video games, and kitchen appliances.
Walmart is also stepping up with major deals on smart TVs, gaming consoles, and iPads, with the company's third round of holiday deals starting on Monday.